Simplifying SIM Supply Chain
Getting SIM cards provisioned and into the hands of new subscribers is a major logistical challenge for wireless operators. In the cut throat telecoms market, with intense competition on retail price, excess SIM supply chain costs can significantly reduce the competitiveness and profitability of your business.
The most frequently adopted strategy is for SIM cards to be pre-provisioned in the network before they are distributed to the retail channel. Pre-provisioned SIM cards usually result in excess use of numbering resources and network database capacity, because resources must be pre-assigned to inactive SIM cards.
The cost and complexity of the supply chain combined with regional numbering constraints in some countries then limits the range of services that can be offered to subscribers.
Problems with Current Practice
When operators were first building their prepaid customer bases, almost all of them adopted a pre-provisioning process for prepaid SIMs. This was the easiest way to ensure a simple sales process, in the widest range of retail channels. While there was little complexity or variation in handsets or services, it was an ideal solution.
In today's market though, legacy pre-provisioning presents a number of supply chain problems:
- Introducing new products and services is expensive and slow. New SIM cards need to be provisioned, packaged and distributed to the target market
- The supply chain is complex. New products and services are constrained by the need to manufacture new SIM cards, resulting in a proliferation of SIM types
- It becomes impossible to match demand and supply. Heterogeneous devices, SIM card mobility, regional numbering, and the rise of SIM-only deals all mean SIM cards end up in the wrong context for the services provided
- Pre-provisioning is wasteful of costly resources such as numbers and network database capacity. This inefficiency gets worse as the range of services and SIM types grows
- Legacy SIM inventory must be scrapped, or re-provisioned and repackaged, to offer new services
- Where regulators impose charges for ranges of MSISDNs, inefficient use of numbers can also represent a large cost to the operator
How We Can Help
Dynamic SIM Allocation™ (DSA) improves efficiency in resource utilization and saves significant cost across the network and supply chains. DSA enables you to sell any product in any channel in any region. Its revolutionary method of provisioning at the moment of first use enables you to fully optimize your supply chain.
- A single generic SIM type can be used to support all types of product and service, reducing packaging cost and risk of wastage
- SIM stock can be moved freely to meet demand for products and services in any region
- Costly resources such as numbers and network database capacity are directly matched to active SIM use, eliminating cost inefficiency and improving margin
- Supply chain costs and cost of sales are reduced, and ARPUs are increased
DSA can help you address your supply chain in a different way – simplifying the supply chain and substantially reduce cost.